LONDON, Jan 22 (Reuters) - Spain’s 10-year bond yield fell to a five-week low in early Monday trade, pushing the gap over benchmark German peers to its tightest in almost three years after Fitch Ratings upgraded Spain by one notch.

Fitch upgraded Spain’s credit rating to ‘A-‘ with a stable outlook late on Friday, citing a strong, broad-based economic recovery and a so far limited impact on the economy from Catalonia’s independence bid.

Spain’s 10-year bond yield was down 2 basis points at 1.412 percent, its lowest level in around five weeks.

The premium investors demand for hold Spanish bonds over top-rated German government debt fell to around 90 bps, its lowest since March 2015. (Reporting by Dhara Ranasinghe; Editing by Saikat Chatterjee)